1. CalHFA Loans MWF Wholesale Brokers
8/27/2018

2. Introduction to CalHFA
To create and finance progressive housing solutions so more Californians have a place to call home.
State of CA agency
CalHFA Approved Wholesale Lender
Mountain West Financial
Self-Sustaining

3. Borrower Eligibility
First-Time Homebuyers: CalPlus, ZIP, MyHome, and School
Non Occupant Co-Borrowers not allowed
Non Occupant Co-Signers allowed on FHA only
Income Limits Apply
Moderate Income
Based on County only
Only calculate income of borrower(s) on the loan

4. Borrower Eligibility
Minimum Credit Score Mid-score of lowest scoring borrower is used.
660 Manual Underwrite for FHA Only
660 for Manufactured
45.00% Maximum DTI
43.00% Manual Underwrite for FHA only

5. First-Time Homebuyer Definition
No ownership interest in their primary residence in the past three years
Community Property
Mortgage Interest
Mobile Homes

6. Qualifying vs. CalHFA Income Limit
Qualifying Income
Determines DTI
Follow FHA/Fannie Mae guidelines for calculation
CalHFA Income Limit
Determines if they meet CalHFA income limit requirements
Follow CalHFA guidelines for calculation

7. CalHFA Income
Averages are done last year + YTD not to exceed 24 months
Can’t average any prior jobs
Only calculate the purchasing borrowers’ income
Do not include household members income or co-signers income – can’t be on title

8. CalHFA Income Calculation
Only calculate the purchasing borrowers’ income
Do not include household members income or co-signers income – can’t be on title
Averages last year + YTD not to exceed 24 months
Can’t average any prior jobs
Include variable income even if no history
Include child support even if no continuance
Will not gross up non-taxable income
Will not deduct 2106 expenses
Self-Employed net from last year & net from YTD P&L

9. CalHFA Income Documentation
Verification of Employment (VOE)
Written or verbal with start date & must be 60 days or less
Paystub(s)
Pay period must be 60 days or less
W-2(s) – most current year for all sources
IRS Transcripts or current year 1040’s
Last 3 years for FTHB and 1 year for Non-FTHB
YTD P&L signed by the borrower

10. Max First Mortgage Loan Amount
Conventional: Cannot exceed Fannie Mae loan limits.
FHA: Cannot exceed FHA loan limits (excluding UFMIP).
Loan amounts exceeding $453,100 will be subject to a high-balance fee
Varies daily/see rate sheet
Max Purchase Price: $705,000
Differs by County for MCCs

11. Homebuyer Education
Face-to-Face OR online course required for one occupying first-time homebuyer:
Online 8 Hour Course
eHome
CalHFA Link ($99 Fee):
Face-to-Face 8 Hour Course
NeighborWorks America
HUD Approved Housing Counseling Agency

12. Property Eligibility Sales Price Limits
Single Family Residence and Condos in CA
Manufactured Homes (Permanent Foundation/660 FICO)
Owner Occupied Only
1 Year Home Warranty
Except New Construction and Non First-Time Homebuyers
5 Acre Maximum

13. Owner Occupied Only
Borrower intends to occupy the property as their primary residence
Borrower has to occupy within 60 days
Not allowed on title or vesting
Non purchasing spouse
Co-Signer

14. CalPLUS Programs FHA 96.5% LTV / 105% CLTV Conventional
97% LTV/ 105% CLTV (includes condos)
HFA Preferred Program
Lowest MI Coverage
18% for 97% LTV
16% for 95% LTV
Single Premium, Monthly and Split Premium Options

15. Zero Interest Program (ZIP)
3% or 4% of the first mortgage loan amount
Zero Interest
Deferred Payments
Closing Costs Only
3rd Lien

16. MyHome Assistance Program (MyHome)
Loan Amount is 3.50% of sales price/appraised value
Deferred Payments
2.50% Simple Interest
Used for down payment and/or closing costs
Has to be combined with a CalHFA 1st Mortgage
Can’t be combined with School Program
Has to be in 2nd lien position

17. School Teacher and Employee Assistance Program
All Staff Currently Employed
Any K-12 California public school
Public charter schools
School district offices
County/continuation schools
Loan Amount
Up to 4.0% of sales price/appraised value whichever is less
Layering
May be combined with other DPA programs with the exception of MyHome, and must accompany a CalHFA first mortgage

18. School Teacher and Employee Assistance Program
Deferred Payments
Used for down payment and/or closing costs
More assistance than MyHome
Can’t be combined with MyHome

19. Scenario CalPLUS Conventional Purchase Price $400,000 LTV 97.00%
$387,981
MyHome (2nd)
$14,000
ZIP (3rd)
$15,519
CLTV %
$417,500
Closing Cost (4.375%)
$17,500
Total Due $0
CalPLUS FHA
Purchase Price
$400,000
LTV 96.50%
$386,000
MyHome (2nd)
$14,000
ZIP (3rd)
$15,710
CLTV %
$422,465 (w/UFMIP)
Closing Cost (4.375%)
$17,500
Total Due
$1,790

20. Cal-EEM + Grant Program
Includes costs of energy-efficient improvement
Additional 4% Grant – not included in LTV calculation
First-Time and Non First-Time homebuyers
Can be combined with MyHome or School Program & MCC
Fully forgiven after three years of ownership

21. Mortgage Credit Certificate Tax Credit Program (MCC)
Dollar for Dollar tax deduction
20% tax credit rate
$450 Fee w/CalHFA 1st or $750 w/out CalHFA 1st
Combined with all CalHFA programs
Unused portion can be rolled forward for up to 3 years
CalHFA does not allow any agency’s MCC to be used for underwriting purposes with a CalHFA 1st mortgage.

22. CalHFA Forms Borrower’s Affidavit – New Form
ZIP Interest Rate Disclosure
Transcripts for past 3 years
Borrower’s not obligated to file must complete
Tax Return Affidavit
3 Year VOR

23. CalHFA Tools/Resources
Loan Program Handbooks
Loan Program Matrix
Loan Scenario Calculator
Marketing Materials

24. Training Classes In-Person Classes On Demand Webinars
Detailed
4 Hours
Specific Dates & Times
On Demand Webinars
Overview of Programs
Available 24-7
Broker Certification required by Mountain West Financial

25. Free CalHFA Leads Where do the leads come from? 1-877-9CalHFA
Requirements
Open Enrollment is January and June
Must close 6 CalHFA First Mortgage loans every six months
Proof of CalHFA Training is required

26. CalHFA/MWF Allowable Fees
Origination Fees: Lesser of 2.50% or the Broker’s existing comp plan
Borrower Paid Origination Only
MWF Underwriting Fee: $995
No other lender/broker fees, including processing, may be charged
Third party fees are allowed
Combined Broker and Lender fees may not exceed the greater of 3% of the loan amount or $3,000

27. CalHFA Loan Reservation Process
Ensure First Time Buyer Indicator is checked if FTHB
Set the PMI Indicator in PML to “Borrower Paid Monthly”
This will ensure the conventional loan programs show up in the results. If Borrower Paid is not selected, ONLY FHA loan products will appear.

28. Loan Interest Rate Locking
Loans must be approved by Underwriting prior to locking.
Once the loans are approved, the broker can request them to be locked in PML.
All locks will be issued for 30 days only.
Locks for subordinate liens will have the same expiration date as the corresponding 1st lien, regardless of when they are locked.

29. Helpful Hints

31. Test Time! Thank you!! CalHFA Broker Certification
MWF certification required prior to loan submission
To pass you must score 75% or higher
Results will be ed to you
Submit loans, easy as 1, 2, 3!
Thank you!!